How to clear up your ChexSystems report

Getting denied for a bank account can feel like being locked out of the financial system entirely. But if you’re facing rejection after rejection, there’s probably a specific reason: your ChexSystems report.

This specialized credit report tracks your banking mistakes — overdrafts, bounced checks, unpaid fees — and more than 90% of banks check it before approving new accounts. The good news? You have real power to clean up your report and get back into mainstream banking.

What ChexSystems tracks about you

ChexSystems is like a credit bureau specifically for your banking behavior. While Equifax and Experian track your credit cards and loans, ChexSystems focuses on checking and savings account problems.

Your ChexSystems report includes account closures for negative reasons, bounced checks, unpaid overdraft fees, suspected fraud or identity theft and even how often you’ve applied for new accounts. The system generates a score from 100 to 899 — higher scores indicate less risk to banks.

Information stays on your ChexSystems report for up to five years, during which time it can make opening new accounts extremely difficult. Even paying off a debt doesn’t automatically remove the negative mark, though ChexSystems must update your report to show the debt was resolved.

1. Get a free copy of your ChexSystems report

You’re entitled to one free ChexSystems report every 12 months under federal law. You can request it online at ChexSystems.com, by calling 800-428-9623, or by mail.

When you request your report online, you’ll need to register for an account and verify your identity. The process is similar to getting your credit report, but focuses specifically on your banking history.

Your report may also include information from Certegy, another consumer reporting agency that tracks check-writing history with merchants. You can get a free Certegy report by calling 800-237-3826 or visiting their website.

Review your report carefully for any errors, outdated information or signs of identity theft. Common mistakes include accounts that weren’t actually yours, debts you’ve already paid, or information that’s older than five years.

2. Dispute errors in your report

The Fair Credit Reporting Act gives you the right to dispute incorrect information in your ChexSystems report. You can submit disputes online, by mail, or by fax directly through ChexSystems.

When disputing errors, include all relevant documentation to support your case. Send copies, not originals, of bank statements, payment receipts or correspondence that proves your point. If you have witnesses who can verify your version of events — like a bank representative who helped resolve identity theft — include their contact information.

ChexSystems must investigate your dispute within 30 days and correct any confirmed errors. Keep copies of all documents and use certified mail with tracking if sending disputes by mail.

Common disputable errors include:

• Accounts closed due to identity theft that wasn’t your fault
• Debts you’ve already paid that still show as outstanding
• Information older than five years that should have been removed
• Accounts that belong to someone else with a similar name

3. Pay off outstanding debts

If you owe money to banks or credit unions, paying these debts is crucial for improving your ChexSystems status. Contact the financial institution directly to discuss your options.

Ask for written confirmation that you’ve settled the debt and request that they update your ChexSystems report to reflect the payment. While this won’t remove the negative mark entirely, it shows future banks that you’ve resolved the issue.

If you can’t afford to pay the full amount, try negotiating a lower settlement or payment plan. Many banks prefer getting some money rather than none and may work with you on reasonable terms.

4. Consider second-chance banking

While working to clear your ChexSystems report, you can still access banking services through second-chance checking accounts. These accounts are specifically designed for people with banking history problems.

Second-chance accounts typically have higher fees, lower withdrawal limits and fewer perks than regular checking accounts. However, they provide a way to rebuild your banking reputation and demonstrate responsible account management.

After maintaining a second-chance account responsibly for 12-24 months, many banks will consider you for their regular account products.

Explore your options with Bankrate’s second-chance checking account guide to find accounts that don’t rely heavily on ChexSystems screening.

Alternative options if ChexSystems blocks you

Some banks don’t use ChexSystems at all or place less emphasis on the reports when making account decisions. These institutions may consider other factors like your income, direct deposit setup, or relationship with the bank.

Banks that don’t use ChexSystems include:

• SoFi Checking and Savings
• LendingClub Checking
• Some credit unions and community banks

You can also consider credit unions, which often have more flexible account approval criteria and may be willing to work with you even if you have ChexSystems issues.

Bottom line

Clearing your ChexSystems report takes time and persistence, but it’s entirely possible. Most negative information automatically drops off after five years, and you can often improve your situation much sooner by disputing errors and paying off debts.

The key is staying proactive about monitoring your report and taking advantage of second-chance banking opportunities while working to resolve underlying issues.